Business

Removal of duty on importation of copper concentrate harmful

ESTHER MSETEKA, Lusaka
ACTIONAID Zambia says the decision by Government to remove 7.5 percent duty on the importation of copper concentrate will negatively affect the implementation of the economic recovery plan as the programme requires adequate finances to function effectively.
ActionAid Zambia Country director Nalucha Ziba said plans to remove 7.5 percent duty on the importation of copper concentrate will push Government to contract more debt as it tries to meet its budgetary obligation.
Ms Ziba said bowing to industry pressure through the removal of 7.5 percent undermines Government’s efforts of having a stable mining tax regime.
“The 7.5 percent tax on copper concentrates was meant to encourage value addition locally and envisioned to contribute towards creation of the much needed jobs,” she said.
Ms Ziba has further called on Government to explain how it intends to get the forgone revenue.
She said there is need for Government to show policy consistency by not reversing measures only when mining companies demand or complain.
“Further, it’s worrying that although Government has embarked on an economic recovery plan that will require sufficient revenues to finance, on the other hand, Government is backtracking on revenue collection,” Ms Ziba said.

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